Logitech 3Q Net Profit Up 41% On Year; Expects Strong 4Q Sales

Date : 01/20/2010 @ 11:00PM
Source : Dow Jones News
Stock : Logitech International S.A. - Registered Shares (MM) (LOGI)
Quote : 33.18  0.53 (1.62%) @ 6:30PM

Logitech 3Q Net Profit Up 41% On Year; Expects Strong 4Q Sales

Logitech International S.A. - Registered Shares (MM) (NASDAQ:LOGI)
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Logitech International SA (LOGI) Thursday reported a 41% rise in fiscal third-quarter net profit as the Swiss computer peripheral maker benefited from recent cost cuts and the sales decline slowed compared with previous quarter.

The Romanel-sur-Morges, Switzerland-based firm also said it expects to see stronger sales momentum in the fiscal fourth quarter.

The company said net profit for the three months to the end of December rose to $57.1 million from $40.5 million in the year-earlier period as the company's restructuring efforts played out.

Sales during the important Christmas holiday period, meanwhile, declined 1.7% to $617.1 million from $627.5 million a year ago. However, on a quarter-on-quarter basis, revenue jumped 24% from $498.1 million in the second quarter, reflecting hopes that the worst of the economic crisis is over and that consumer spending will pick up.

"(The third quarter) marks a turning point in our plan to emerge stronger from the economic downturn," said Gerald P. Quindlen, Logitech president and chief executive officer. "There were many highlights in the quarter, starting with improved sell-through in all of our retail regions, driven by the success of our new products across multiple categories."

"For the current quarter, we anticipate accelerating sales momentum, resulting in our return to double-digit sales growth, as well as a substantial improvement in profitability compared to (fourth quarter of fiscal year 2009)," he added.

The company forecasts sales for the fourth quarter ending March 31 to be between $500 million and $515 million, a gross margin of about 34% and operating income between $15 million and $20 million.

Logitech posted a net loss in the fourth quarter of the preceding fiscal year and the first quarter of current fiscal year as retailers started to aggressively destock, a trend that slowed in the second quarter and now seems to have ended, igniting hopes for a turnaround.

Company Web Site: www.logitech.com

-By Se Young Lee and Goran Mijuk, Dow Jones Newswires; +65 6415 4155; vincent.lee@dowjones.com

 
 



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